January 29, 2010, Newsletter Issue #108: Can I Borrow from my 401k Plan?

Tip of the Week

Many people often wonder if they can take money out of their 401k plan. The answer is emphatically, yes. Many 401k plans offer loans, however some 401k plans have limitations on the reasons for the loan. If your 401k plan is through your employer, you will need to contact your human resource department for information regarding your 401k plan and the loan requirements. Typically, you will take a loan out and then repay the money back with interest. You can even continue to accrue money in your 401k plan. Taking out a loan on your 401k plan offers some benefits. For instance, you don't have to worry about your credit rating to qualify for the loan. There may be some restrictions involving payments and the amount of time you have to repay the loan.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Not finding the advice and tips you need on this Retirement Planning Tip Site? Request a Tip Now!

Guru Spotlight
PJ Campbell